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1、STRATEGY (1)Session 2: Problem StructuringTheory of problem structuring Practical application by “building a case” for multiple possible uses such as A proposal you make An answer you give A position you take天马行空官方博客：http:/ ；QQ:1318241189；QQ群：175569632STRATEGY (2)Theory: Steps in Problem Structuring
2、First: how did you arrive at this position and why is it of interest to me? Four distinct sub-steps here: Business as usual: Things are normal A problem or complication arises An obvious question then arises: E.g. “What to do about it?”In response to this question you develop an answer (or a proposi
3、tion or recommendation) ComplicationQuestionSomething went wrongWhat do we do?Something could go wrongHow can we prevent it?Something changedWhat should we do?Something could changeHow should we react?Heres what you might expect to find in itDo we find it?Heres someone with a different point of view
4、Who is right?In this situation we have three alternativesWhich one should we take?From: B. Minto, The Pyramid PrincipleSTRATEGY (3)Steps in Problem Structuring (2)Second: capture attention of reader or develop depth of argument Establish a question, answer it, move to the next level of refinement. V
5、ertical linkagesPigs should be kept as petsSTRATEGY (4)Steps in Problem Structuring (3)Third: convince the reader or develop support for argument Inductive or deductive logic. Horizontal linkages Typical problems Overlaps (not mutually exclusive) Gaps (not collectively exhaustive) Not commonly accep
6、ted logic of ordering Temporal (A before B before C) Structural (US Division, European Division) Other basic relationship: Part / whole Opposition Similarity ImportanceSTRATEGY (5)The problem with ACME Bottle“ACME Bottle” has been losing money. “Diversified”, owner of 49% of ACME, has received an of
7、fer to sell ACME for $97 million. You have been hired to advise Diversifieds Management on what to do. Outline the report you will write. On a single sheet of paper: Define accurately and clearly the problem facing Diversified. Break down the problem into its components Specify one hypothesis that w
8、ould help address each component Describe the data and analysis that will confirm or disconfirm each hypothesisSTRATEGY (6)Is ACME worth more than $97million?ACME report: Inductive Should Dude keep ACME and focus on selling value added products?Will a small increase in profits bring ACME above $97 m
9、illion?Does industry performance suggest that a small increase is reasonable?Do players have to sell either value -added or commodity products to be successful?Do ACMEs R&D & quality results match those of leading value-added players?Is ACMEs technically knowledgeable sales-force among the most resp
10、ected in the industry?Should ACME focus on selling value added products?Are ACMEs resources and capabilities better suited to the value- added sector?STRATEGY (7)ACME report: DeductiveIs ACME worth more than $97million?Should Dude keep ACME and focus on selling value added products?Will ACME realise
11、 greater value if it focuses on either high value-added or commodity products?Will a small increase in profits bring ACME above $97 million?Does industry performance suggest a small increase is reasonable?Do players have to sell either high value-added or commodity products to be successful?Does ACM
12、Es unfocused strategy result in higher costs, lower prices and low profitability?Are ACMEs cost and quality positions in line with industry average?Do ACMEs R&D & quality results match those of leading value- added players?Is ACMEs technically knowledgeable sales-force among the most respected in th
13、e industry?Does ACMEs direct sales force and quality focus create the high cost structure of a value-added player?Do high market share objectives cause ACME sales reps to price as low as commodity players?Should ACME focus on selling value added products?Are ACMEs resources and capabilities better s
14、uited to the value- added sector?Do gains from high prices for value added products outweigh loss in sales volumes?STRATEGY (8)Two ways to develop a line of questioning or a presentationGrouping (inductive)Governing thought A group of independent thoughts that support the same conclusionAll answer t
15、he same question “what”, “how”, or “why” All same “type” of noun examples, actions, reasons Combine to support higher level of abstractionArgument (deductive)Governing thought A logical progression of thoughtsFrom premise (statement about situation) to comment to implication Governing thought relies heavily on implication+STRATEGY (9)How can this stuff be useful to us?Winning support for an initiative at work Cracking a case at an interview Working as a consultant Writing a report at LBS Using the material in this courseSTRATEGY (10)Assignment: Write a Business as Usual /
